Indian PM launches support, outreach scheme for MSMEs

03 Nov '18
3 min read
Prime Minister Narendra Modi addressing at the launch of the Support and Outreach Initiative for MSMEs, in New Delhi. Courtesy: PIB
Prime Minister Narendra Modi addressing at the launch of the Support and Outreach Initiative for MSMEs, in New Delhi. Courtesy: PIB

Indian Prime Minister Narendra Modi has launched a support and outreach programme for micro, small and medium enterprises (MSMEs) consisting of 12 key initiatives to help them grow and expand. The five key facilitating aspects are access to credit, market access, upgrading technology, ease of conducting business and a sense of security for employees, he said.

Launching the programme on November 2, the prime minister said MSMEs are one of the principal employment generators in India and the 12 initiatives will address each aspect.

He launched a ‘59 minute loan portal’ to enable easy access to credit for MSMEs. Loans up to ₹1 crore can be granted in-principle approval through this portal within an hour.

A 2 per cent interest subvention for all MSMEs registered with the goods and services tax (GST) council on fresh or incremental loans was announced. For exporters who receive loans in the pre-shipment and post-shipment period, there is a provision of an increase in interest rebate from 3 per cent to 5 per cent.

All companies with a turnover more than ₹500 crore must compulsorily be brought on the Trade Receivables e-Discounting System (TReDS), Modi announced. Joining this portal will enable entrepreneurs to access credit from banks based on their upcoming receivables that will resolve problems related to cash cycle, a press release from the Prime Minister's Office quoted him as saying.

State-run public sector undertakings (PSUs) will now compulsorily procure 25 per cent, instead of 20 per cent of their total purchases from MSMEs and out of that 25 per cent procurement, 3 per cent will now be reserved for women entrepreneurs, he said.

All central PSUs must now compulsorily be a part of the Government e-Marketplace (GeM) and get all their vendors registered on GeM, he said.

Twenty technology upgradation hubs and 100 tool rooms will be set up will be set up across the country, he said.

Clusters of pharmaceutical MSMEs will be formed and the central government will bear 70 per cent their establishment costs. The return under eight labour laws and 10 union regulations will now be filed only once a year and inspectors will visit establishments based on a computerised random allotment, the prime minister said.

An entrepreneur at present requires two clearances—environmental clearance and consent to establish. He said both these have been merged as a single consent now.

Under an ordinance, for minor violations under the Companies Act, an entrepreneur will no longer have to approach the courts but can take corrective measures through simple procedures, he said.

A mission will be launched to ensure that workers in MSMEs have Jan Dhan accounts, provident fund and insurance.

The implementation of this programme will be intensively monitored over the next 100 days, he added. (DS)

Fibre2Fashion News Desk – India

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